GAIL’s director (marketing) Sanjay Kumar said the company is expanding its long-term LNG portfolio to meet demand growth.
“The growing Indian market is core to Vitol’s strategy and Vitol’s diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy,” Jay Ng, chief financial officer of Vitol Asia and executive committee member, said.GAIL in its stock exchange said India emerged as the fourth-largest LNG importer in 2024, with demand expected to rise steadily over the next decade.
The Centre has set a target to increase the share of natural gas in the country’s primary energy mix from the current 6% to 15% by 2030, it said. India’s LNG regasification capacity has witnessed substantial growth, nearly doubling from 21 MMTPA in 2014.
On another note, GAIL is poised for a significant boost in its pipeline tariffs, with sources indicating a potential increase of nearly 20%.The Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to approve a revised tariff in the range of ₹70 per mmBtu, up from the current rate of ₹58.59 per mmBtu.
According to exclusive information, the tariff order could be finalized within the next one to two months. AK Tiwari, the PNGRB board member who spoke to CNBC-TV18 last week, stated that the board would adopt a “balanced approach” and give due consideration to GAIL’s official submissions.
GAIL has submitted a proposal for a tariff of ₹78 per mmBtu but has signaled to CNBC-TV18 that a revision of ₹70 – ₹71 per mmBtu would still be viewed as a positive outcome.
The proposed tariff revision is seen as a key earnings driver for GAIL, especially as the company continues to expand its natural gas transmission network across India.
GAIL shares were up 0.4% at ₹184.4 apiece at 12.10 pm on Tuesday, July 15. The stock has declined 3.6% in the past month.
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